Section 41(2) of the Principal Act is amended by -

(a) substituting "Notwithstanding subsection (1) but subject to paragraph (aa) -" for "Notwithstanding subsection (1) -", and

(b) inserting the following paragraph after paragraph (a):

"(aa) the provisions of this Part which relate to the funding standard reserve shall not apply to -

(i) a defined contribution scheme which is a regulatory own funds scheme, or

(ii) a small scheme of the type referred to in paragraph (b) of subsection (1) which is a regulatory own funds scheme,".